The American satellite Internet system “Starlink” that covers the globe continues to make breakthroughs in technology. Three years ago, the Chinese Communist Party (CCP) established a state-owned enterprise to create “GuoWang” (National Network) in an attempt to compete with it. Experts believe that while there is still a large technological gap between China and the United States, the CCP’s rapid satellite manufacturing speed may lead to the quick realization of the “GuoWang” project, which should not be underestimated. The origin of China’s relevant technology and the public-private partnership model are also worth paying attention to.
Satellite Internet is a broadband service model using satellites as the access method, providing unique application value for special fields, commercial broadband communication, and other areas.
According to a report by the US media “Connecting China” on June 2, the competition between China and the United States in the field of satellite Internet points out that “with a large number of private companies entering the field, the CCP hopes to eventually catch up with America’s Starlink.”
The report states that China needs to launch as many satellites as possible to catch up with SpaceX, launched by Elon Musk, consisting of more than 6,000 low-earth orbit satellites forming “Starlink.” The Starlink program plans to launch an astonishing 36,000 satellites in the coming years.
Novaspace, a market information company focusing on space and satellite fields, stated that despite all of China’s efforts, they have only launched fewer than 200 satellites into low-earth orbit—most of which are used for technical demonstrations and Earth observation rather than telecommunications.
Starlink provides high-speed internet to 2.6 million customers in 72 countries, including remote areas like the Arctic and Antarctic. This giant constellation holds strategic and national security significance, as demonstrated by the Ukrainian military relying on it during the Russian invasion. According to Reuters, SpaceX is intensifying cooperation with US intelligence agencies to build a space network consisting of hundreds of spy satellites, enhancing the ability of the US military to rapidly discover potential targets worldwide.
Beijing entered this field relatively late. With the continuous technological breakthroughs of the US “Starlink” technology, the CCP is very anxious.
Tung Hsin-wen, Assistant Researcher at the Institute of CCP Military and Operational Concepts at the Taiwan Institute of National Defense Security, told Epoch Times that the urgency of the CCP to complete a large-scale satellite network is mainly to occupy orbital positions and communication spectra within the time limit. China’s national satellite Internet project is not only infrastructure for 6G communication but also crucial to its political security. Therefore, the CCP is pushing forward with all its national strength.
To ensure that its network firewall can continue to be effective, the CCP is also making every effort to prevent Starlink from entering China. In addition to Starlink, which falls under Musk’s Tesla, the electric vehicle company also established a large-scale “Gigafactory” in China. Musk revealed in 2022 that the Chinese government demanded assurance that Starlink would not be introduced into China.
In order to secure satellite orbits and communication spectra preemptively, China submitted the “GW Constellation” plan to the International Telecommunication Union (ITU) in November 2020 while the Secretary-General was still a Chinese national. The number of satellites China plans to launch ranks second in the world, only behind the US.
Tung Hsin-wen stated that the size of China’s “GuoWang” network may not match Starlink’s, but it still surpasses other countries. China’s ultimate goal in space development is to establish a CCP-led so-called human space destiny community. The “GuoWang” network is just the first step; once completed, it will enable China to master various capabilities of satellite internet, utilizing AI + satellites for comprehensive monitoring and reconnaissance, and collecting various relevant intelligence from other countries, equating to holding a portion of space dominance.
She said that the US has previously lagged behind in space development due to budget constraints, providing China with an opportunity to catch up. However, the US’s satellite technology is likely superior to China’s, and the low-orbit satellite network is vulnerable to solar storms. It remains to be seen whether China’s “GuoWang” can rapidly replenish and repair damaged satellites once established.
In terms of the cost of sending satellites into near-earth orbits, the US has an advantage. SpaceX’s Falcon 9 and Falcon Heavy rockets have reduced launch prices to $2600 and $1500 per kilogram, respectively. Once the heavy-lift rocket Starship is tested successfully, prices could drop to a few hundred dollars per kilogram.
The launch price for low-orbit satellites by China’s Long March 5B rocket is $5000.
China expert Wang He pointed out that, while China previously opened up the global rocket launch market based on low costs, it is now unable to compete with Musk’s SpaceX. Therefore, China’s initiative to launch satellites into near-earth orbits and build its own constellation network to counter Starlink will be highly defensive. Additionally, the military application of Starlink is powerful, as evidenced during the Russo-Ukrainian war. If a conflict arises in the Taiwan Strait, the US government’s request for Starlink support poses a significant challenge for China.
“The Chinese Communist Party is developing the satellite internet to deal with Musk and Starlink. However, there is a large technological gap between the CCP and Musk,” he stated.
In April 2021, the China Satellite Network Group Co., Ltd. (referred to as “China Star Network”) was officially established with the objective to build a Chinese version of Starlink. The group is directly controlled by the State-Owned Assets Supervision and Administration Commission and is headquartered in the Xiong’an New Area in Hebei Province, serving as the first central enterprise to register in the Xiong’an New Area.
However, over the next three years, the development of the GuoWang project appeared to stagnate. With Beijing increasing scrutiny on state-owned enterprises, China Satellite Network became embroiled in a round of disciplinary inspections last year. Furthermore, the Xiong’an New Area where China Satellite Network is headquartered was envisioned by the CCP to be an innovative center, but it now remains deserted and struggles to attract talent.
On November 23, 2023, a rocket launched from the Xichang Satellite Launch Center placed experimental satellite internet technology satellites into their intended orbit. However, there have been no subsequent updates on this development.
The GuoWang constellation consists of two sub-constellations. In addition to the GW-A59 and GW-2 sub-constellations managed by China Star Network, there is the “G60 Starlink” project to be launched by Shanghai Gest Aerospace Technology Co., Ltd., a subsidiary of the Lianhe Investment Company.
In July of last year, the Shanghai government announced plans to develop the massive G60 Starlink constellation, consisting of up to 12,000 satellites. It is operated by Shanghai Space Satellite Technology Co., Ltd. (SSST), a subsidiary of some of the shares in Genesat, and is expected to deploy approximately 648 satellites by the end of next year to provide regional coverage.
Similar to the national system approach adopted in the semiconductor industry, China’s ambitious plans in the Chinese version of Starlink are significant. An economic magazine reported last November that Songjiang in Shanghai is planning the G60 Starlink project, intending to launch tens of thousands of satellites; Wuxi in Jiangsu invited anchor owners to build industrial ecosystems; and Haiyang in Shandong set up the country’s first offshore launch hub.
Wang Hsin Wen stated that currently, the most extensive satellite internet construction project in China is the GuoWang project, in addition to China Aerospace Science and Technology Group’s “Hongyan Global Satellite Constellation Communication System” project, China Aerospace Science and Industry Group’s “Rainbow Cloud” project, and the private enterprise “Galaxy Aerospace” company’s “Galaxy” project, among others.
On December 27, 2023, the “Genesat” G60 satellite digital factory started production of commercial satellites at the G60 satellite internet industry base in Songjiang District.
The first tablet satellite rolled out is the size of a motorcycle and appears unassuming, even fragile, as it comes off the assembly line. It is said to meet the demand for multiple star stack launches and provide broadband access communication services to users worldwide.
“In the past, it took two to three months to design and customize a satellite,” boasted Cao Jin, General Manager of Genesat, to the audience, “Now the factory can produce a satellite every day and a half, with a maximum annual production capacity of 300 satellites.”
Wang Hsin Wen noted that the key feature of Genesat’s G60 tablet satellite is the manufacturing speed, which usually takes about two to three months for one satellite to be completed, while Genesat’s smart factory can produce a satellite every 1.5 days. This rapid production pace could accelerate the completion of the GuoWang project, causing concern to the US and other countries.
Research shows that the Second Academy of Aerospace Science and Industry claimed in May 2021 that China’s first small satellite smart production line has a designed production capacity of 240 satellites per year, equivalent to producing a satellite every 1.5 days.
Wang Hsin Wen emphasized that although China claims its satellite technology is self-developed, it is widely known that China has “acquired” technology from the US and other advanced countries. In addition, due to Musk’s friendly relationship with China through Tesla’s manufacturing in the country, it cannot be ruled out that relevant technology has been “transferred.”
While G60 Starlink is only partially state-owned, observers believe this is not a strategic shift but rather China’s usual approach.
Wang Hsin Wen mentioned that the establishment of China Star Network is to coordinate the satellite internet construction, consolidating multiple satellite internet projects from various Chinese public and private sectors into one. In short, China’s basic development model for emerging technologies combines government capital with private enterprise technology, serving both official and commercial purposes to facilitate role transitions in different circumstances such as collaboration with foreign companies and technology introduction, ultimately prioritizing military purposes.